Tyre Stewardship Australia - Transforming the Australian Tyre Industry

1. New Zealand Tyre Industry Summit June 2015Tyre Stewardship Australia - Changing market perspectives

2. The Australian Problem • Increasing pressure to reduce tyres going to landfill, stockpiles, illegal dumping, and export of whole baled tyres to countries for inappropriate disposal (low temp burning) • Data estimates from Hyder study into fate of end-of-life tyres: • 51 million tyre equivalent passenger units (EPU) tyres entering the waste stream in 2013-14. • 68% EOL passenger & 32% truck tyres exported energy and reuse • OTR 84% landfill and stockpiling • 5% domestically recycled (in 2015) down from 16% in 2010 • Wasted resource, health and environmental risks • Inconsistent with company CSR and/or environmental policies • Inconsistent with community expectations reflected in government policies

3. The Australian Challenge • Sustainability of domestic recycling industry: currently uneconomic • Need to eliminate tyres going to landfill and inappropriate exports • -Supply of tyres for recycling is undermined • Lack of level playing field for tyre supply chain participants • No recognition of higher cost of sustainable use of tyres • Capturing the value of a tyre • Lack of viable end-markets • Lack of Data • Lack of Standards and uniform legislation

4. The Role of TSA Aims to turn waste into a valuable resource TSA will undertake: Industry and community education on end-of-life tyre management Research and development of new uses for tyre-derived raw materials Independent accreditation and auditing to eradicate dirty, unsafe and unethical practices Data collection and reporting

5. The Members of TSA Not for profit industry body Major manufacturers/importers representing the majority of the Australian tyre market:- Bridgestone, Continental, Goodyear-Dunlop, Michelin, Pirelli, Toyo, Yokohama, Tyrepower, Australian Motor Industry Federation Tyre retailer; Tyre recyclers

6. Federal and State Government Support Recognition and encouragement Federal Environment Minister The Hon. Greg Hunt MP launched the TSA on January 20, 2014. Government support for an industry solution rather than further regulation

7. The Basis for a Stewardship Scheme Series of commitments (or code of conduct) by tyre importers, retailers, collectors, recyclers, governments, fleet operators, miners and other large users. A tyre stewardship fund used to support the activities of the scheme An organisation called Tyre Stewardship Australia (TSA) responsible for administering the scheme

8. Objectives and Principles of the Scheme Objectives To increase resource recovery and recycling and minimise the environmental, health and safety impacts of end-of-life tyres generated in Australia, and To develop Australia’s tyre recycling industry and markets for tyre derived products. Principles Industry-led and operated Acknowledges the inherent value of end-of-life tyres Committed to market-based solutions for sound end-of-life tyre management Complements relevant policies and legislation and supports compliance with relevant laws and practices Appropriately resourced and empowered to deliver its objectives

9. General Commitments • All participants in the scheme commit to: • Support the objectives of the scheme • Deal transparently and ethically with others involved in the tyre supply chain, including consumers • Promote the scheme to the community, other businesses and organisations • Use the scheme’s branding and logo • Abide by relevant policies and legislation • Co-operate with surveys and with random or risk-based audits • Commit to contribute to: • Environmentally sound use of end-of-life tyres • Elimination of the export of whole baled tyres from Australia • Elimination of the illegal dumping of end-of-life tyres, and • Elimination of end-of-life tyres going to landfill except where no viable alternative is available

10. Addressing the challenge – market barriers Domestic High processing and transport costs Constrained Demand for TDP Competition for collection fees Landfill pricing International Impact of commodity prices Impact of oil price Market conditions (eg Malaysian pyrolysis plant closures)

11. Addressing the challenge - levers Regulatory interventions - storage and collection regime - harmonisation Adoption and enforcement of standards Sustainable procurement policies Investment opportunities – brokering Lack of viable end-markets - capturing the value of a tyre Lack of data – existing and new entrants to market need better information

12. Addressing the challenge – technical Asphalt - specifications - product performance (impact of other waste streams) Pyrolysis - Value for end products - access to clean energy market mechanisms - oil and steel known markets - carbon black market - Moulded products, mulch, soft surfacing Bonding in plastics – autoparts, sewerage pipes etc Diesel replacement in explosives - economics and reliability

13. TSA Website www.tyrestewardship.org.au Full details on the TSA, members, supporters, how it works, what it does and what accreditation entails

14. Contacts Gerry Morvell Chairman Matt Genever Chief Executive Officer www.tyrestewardship.org.au